Flawed Assumptions about the
Credit Crisis
A Critical Examination of US Policymakers
This report from Celent compares leading US policymakers’ assumptions with available data regarding the credit and lending markets. Celent finds irreconcilable differences between the public pronouncements of leading US policymakers and information published by the very institutions they lead. It consider the two policymakers most involved in the financial crisis: the chairman of the Federal Reserve Bank, Ben Bernanke, and the secretary of the United States Department of the Treasury, Henry Paulson.
While there is no denying that we are mired in a very serious financial crisis, this does not yet appear to have transformed into a general credit crisis. In aggregate, credit and lending markets appear to be functioning well, and in many cases are actually operating at historically high levels.
In repeated areas, the key assumptions about US credit markets being made by these policymakers are not supported, or are flatly contradicted, by the available data. In most cases, Celent have relied on data from the Federal Reserve Bank for our analysis.
To view the report in full, please click here (278KB)
While there is no denying that we are mired in a very serious financial crisis, this does not yet appear to have transformed into a general credit crisis. In aggregate, credit and lending markets appear to be functioning well, and in many cases are actually operating at historically high levels.
In repeated areas, the key assumptions about US credit markets being made by these policymakers are not supported, or are flatly contradicted, by the available data. In most cases, Celent have relied on data from the Federal Reserve Bank for our analysis.
To view the report in full, please click here (278KB)
